Now The Verge's Tom Warren points to a video demo Microsoft showed on stage at the Consumer Electronics Show during Samsung's keynote. It's called IllumiRoom and Warren thinks it's pretty close to what Microsoft will include in the next Xbox.

IllumiRoom can scan your living room and project images onto your surroundings, making it feel like you're completely immersed in the game. We've embedded the demo video below so you can see it in action.

Microsoft says this isn't just some pie-in-the-sky concept video; it's actually pretty close to what testers have seen in labs.

We've been told by people in the know that Microsoft's next Xbox will be "jaw-dropping." If it uses anything like what we see in this video, that's certainly going to be the case.